European Home Report 2014

Sir Ian CheshireGroup Chief Executive, Kingfisher

Véronique Laury

Chief Executive, Castorama France

About Kingfisher

• Europe’s leading home improvement retailer and 3rd largest in the world

• Over 1,130 stores in 10 countries

• Sales of £11bn

• Main retail brands are B&Q, Castorama, Screwfix and Koctas

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Kingfisher European Home Report 2014

Background

• Comprehensive survey of over 17,000 people in nine European countries, looking at home improvement trends

• A unique snapshot of the way Europeans view their homes

• Our aim as a business: to help people have better homes and therefore better lives

• Dedicated to understanding how they view their homes and how they want to improve them

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The Adaptable Home

Expanding or adapting home space for changing family, social and work-life needs

Spending on the home, back on the agenda

Spending trends and priorities

Four Key Themes

The fear factor: rising energy bills

Rising energy costs are the biggest concern

DIY confidence

Which countries are the most capable?

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The adaptable home

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Changing lifestyles and demographic shifts mean that homes need to be increasingly flexible spaces

Increasing space is one of the top home improvements that Europeans plan to make over the next five years

The adaptable home

Enable More Family Members to Live-In

Enable Working from Home

Make Space for Entertainment

Create More Space

Improve Energy Efficiency

0% 5% 10% 15% 20% 25% 30% 35%

Priorities

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Homes are needed for work, rest and play• 77% of Europeans want to adapt their homes to accommodate

changing family needs, to accommodate babies, teens, and elderly relatives.

• Today, nearly half (47%) of people have, or would like, a home office

• 24% have already updated their home for entertainment purposes

• 17% plan to adapt their home for entertainment purposes

The adaptable home

Home office Home cinema0%

10%

20%

30%

40%

50%

HAVE

HAVE

WANT

WANT

Would likeAlready have

Work/Play Features

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We’re becoming more aspirational• Most desired features:

• 28% would like a swimming pool

• 26% would like a fireplace

• 23% would like a conservatory

• 22% would like a hot tub

The adaptable home

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Spending on the home, back on the agenda

The economic downturn affected home improvement

77% of people reduced spend on home improvement as a result of the fragile economy

Economic Impact:

Spending on the home, back on the agenda

4%

19%

43%

34%I’ve done much less

I’ve done slightly less

I’ve done slightly more

I’ve done much more

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But home spending is becoming a priority again• On average, people are now planning three home projects for the

year ahead

• The Russians are planning the most (avg. 4 projects)

• The French are planning the fewest projects (avg. 2 projects)

Average number of projects planned in the next 12 months

Spending on the home, back on the agenda

France UK European Average

Russia0

1

2

3

4

5

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Home improvement seen as value creator once again Desire to increase value in our homes has quadrupled

• 68% of Europeans are making home improvement changes to increase the value of their home

• In 2012, this was just 17%

Increasing the value of the home as a motivation for doing home improvement

Spending on the home, back on the agenda

2012 20140%

10%20%30%40%50%60%70%80%

Moti-vated to do...

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We’re staying longer in our homes• 57% people intend to stay in their current home for 10 years or

more

• In 2012 this was 52%

• Slightly more people are planning to move this year (7% vs 5% in 2012)

How long do we plan to stay in our homes?

Spending on the home, back on the agenda

One year 10 years +0%

10%

20%

30%

40%

50%

60%

2012

2014

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The fear factor: rising energy bills

Increasing energy bills are the biggest concern in all markets• 65% fear rising energy prices

• 40% worry about paying bills

• 23% worry about keeping up with mortgage payments

Biggest home fears

The fear factor: rising energy bills

Mortgage/Rent payments

Heating

Other utility bills

Rising energy prices

0% 10% 20% 30% 40% 50% 60% 70%

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30%

44%

16%

10%

• 31% are planning to make energy efficient changes vs. 4% in 2012

• 74% are motivated to do home improvements to improve energy efficiency and sustainability

• Energy efficiency is a financial imperative, rather than an environmental one

Energy efficiency as a home improvement motivator

The fear factor: rising energy bills

Strongly agree

Slightly agree

Slightly disagree

Strongly disagree

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DIY confidence

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DIY confidence

15% of Germans will tackle an extension, 50% of Turkish not confident changing a light bulb, 15% of Polish will tackle a heating installation

The DIY confidence Leader board*:

• 1st Germany

• 1st France

• 3rd Poland

• 4th Russia

• 5th Spain

• 5th UK

• 7th Ireland

• 8th Romania

• 9th Turkey

* Confidence in doing 22 common DIY tasks

Being capable around the house is considered the third most desirable feature in a potential partner across Europe

What are the most desirable qualities in a partner?

1. Intelligent 67%

2. Cultured 53%

3. Practical around the house 48%

4. Can cook 40%

5. Likes animals 35%

6. Knowledgeable about current affairs 34%

7. Well-dressed 31%

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And finally: DIY can help you find love…

The UK: A snapshot

• Most likely nation to buy DIY products online (46%) and most likely to use ‘click & collect’ services (28%)

• 2nd most likely nation to have a garden shed (49%), after the Irish (52%)

• 8% plan to move house in the next 12 months, up from 5% in 2012

• Britain remains a nation of gardeners, with above average confidence in vegetable growing (55%) and lawn mowing (68%)

• Top of the UK’s wish list is to have a conservatory (29%)

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The Adaptable Home

Spending on the home, back on the agenda

In summary

The fear factor: rising energy bills

DIY confidence

• The home is a key priority for people• We want more and more from our homes• There are common consumer themes across Europe

Country Highlights

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QUESTIONS

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European Home Report 2014